Raven Industries Sees Flat Sales For Third Quarter; Net Earnings Will Decline As Much As 30 Percent
SIOUX FALLS, S.D., Oct. 16 /PRNewswire/ -- Raven Industries, Inc. (Nasdaq: RAVN) announced today that management expects a drop in profits for its third quarter due primarily to problems in its Plastics Segment. A major decline in its industrial tank business beginning in late summer and extending into the third quarter is causing this portion of the company's business to operate at a loss in the third quarter. Additionally, quality problems together with soft demand for the company's truck topper line are causing third-quarter losses for this business.
The plastic films business -- the third product line within the segment -- is expected to register sales gains for the quarter as well as an increase in operating profits. Unfortunately, the growth in plastic films will be more than offset by poor performance in the plastic tank and topper business.
"This is a temporary setback," commented President and Chief Executive Officer David A. Christensen, "and we are still expecting a strong fourth quarter which will give us record sales for the year. At this point, we believe that record profits for the year are also attainable."
Raven Industries is a diversified manufacturer that supplies plastics, electronics and special-apparel products to various markets.